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Africa Oil Operations Hit Dry Wells in Ethiopia

Pat Robert  Larubi - 17/07/2014 07:44 CDT

Kampala, Kampala, Uganda

Africa Oil Corp on Monday announced that the Gardim-1 exploration well, drilled on the eastern flank of the Chew Bahir Basin in the South Omo license, onshore Ethiopia, has reached a total depth of 2,468 metres in basement, without encountering commercial oil.

Keith Hill, President and Chief Executive Officer, Africa Oil, commented, "While we are disappointed that neither well in the Chew Bahir basin recovered oil, we are still committed to further exploration in Ethiopia including the South Omo Block"

However according to Hill, the presence of an active petroleum system has been confirmed in the Western portion of the South Omo Block in the Sabisa and Tutule wells and further analysis will be undertaken on the Shimela and Gardim wells to determine if further exploration is warranted. The company will also undertake seismic programs this year in both the Rift Basin Area and Adigala blocks with drilling planned for next year.

The news release further stretched that, the well is intersected with lacustrine and volcanic formations as minor intervals with thermogenic gas shows the intersection just above the basement. The well will be plugged, abandoned and drilling operations demolished as results are are integrated into the regional basin model.

Meanwhile seismic interpretation continues on independent productivity elsewhere in the licensed area with the next exploration campaign geared towards these new sites.

Nick said they will continue to explore all sites with known and unknown risks considering uncertainties and other factors that may cause actual results or events of the discovery to differ materially from those anticipated.

The Company believes that the expectations reflected in their forward-looking statements are reasonable, but could not give assurance that the expectations will prove to be correct as the sites cannot be unduly relied upon.

The findings has though posed a risk and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third party service providers, equipment and processes relative to specifications, expectations and unanticipated environmental impacts on operations.

Africa Oil's East African holdings is a world-class exploration play fairway with a total gross land package in this prolific region in excess of 215,000 square kilometers with the East African Rift Basin system one of its last site in the great rift basins to be explored. Seven new significant discoveries have been announced in the Northern Kenyan basin in which the Company holds a 50% interest along with operator Tullow Oil plc.